China is the largest market that every Tom, Dick and Yahoo trying to get into but the reality is the country with more than 5,000 years of civilization is not a country that offers you the golden key to instant riches just because you’ve the money to invest. It’s a complicated nation that could dry your money before you could blink your eyes. The nation has become the specialist in manufacturing that if you’re trying to shift your factory there hoping to leverage on its low costs of production, chances are you might fail miserably if you didn’t do your homework. And this applies to other sectors as well.
So when Yahoo Inc. (Nasdaq: YHOO, stock) and even Google Inc. (Nasdaq: GOOG, stock) tried their luck there, they were met with stiff competition from local rivals such as Baidu.com, Inc. (Nasdaq: BIDU, stock). China’s almost 100 million broadband users and 20 million bloggers is nevertheless a huge market by itself. And if a survey reported that Chinese web young users of between 16 and 25 years of age depend heavily on internet than anybody else is anything to goes by, one will tends to rush stockpiling Baidu’s stocks.
Did you watch the movie “300”? I think Baidu.com is heading to that level and if you care to read my previous article, you should know how I played this stock. There’s something funny about stocks investing. When something goes wrong and there’re not much catalysts that could jump-start the dying battery, the stock would eventually heading south. Most importantly the $300 support is stronger than the $330 and hence, don’t bet your last penny on $330 as the bottom. Meanwhile did you noticed how Apple Inc.’s (Nasdaq: AAPL, stock) take off before Steve Jobs takes the stage tomorrow, 15th Jan at the 2008 Macworld Conference and Expo?
But sometimes things would not go the way you want it to. If the CFO dies, normally a company could face a minor hiccup before recovering; but what do you get if this happened to Baidu? It comes crumbling down like a rock. I mentioned the $350 was the support and if that couldn’t hold, the stock could see another $20 flushed into the toilet of which it did. You’re watching the poor Chinese-version of Google crawling helplessly to keep its head above the $330 water-level. In normal circumstances the stock should hold well but considering that the overall market sentiment is so weak, Baidu might as well let go and sink like the Titanic.
Other Articles That May Interest You …
- Spectacular last 90 minutes cheers to Tech-Stocks
- Take Money off the table on Baidu, watchout for Apple
- Baidu mourning while Google and Apple near support
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January 14th, 2008 by financetwitter
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“”Most importantly the $300 support is stronger than the $330 and hence, don’t bet your last penny on $330 as the bottom.
Yes the support at 300 is the most significant level… at the triple bottom!
Apart from the 350 resistance, there is a stronger trendline resistance at 375. Got to watch out if anyone would like to take chances